Steemit SMTs and How They'll Impact Steem's Value
Excited About Steemit SMTs? You Should be!
In today's video I break down what Steem SMTs (Smart Media Tokens) are and how they'll impact us as Steem holders. Even if you're not interested in investing in these SMTs, or using the new platforms being created, you may want to know how they affect us over here on Steemit. As the very first SMT, APPICS is in its final ICO stage and set to launch in the coming days/weeks. So it's important to know how this upcoming platform could influence the value of Steem for us who are utilizing Steemit and its many applications.
Links Mentioned In Today's Video:
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The SMTs run on Steem blockchain just like ERC-20 tokens run on ETH but Steem chain is specialized into building Social Media apps "proof of brain". Think of it like a real life metal link chain carrying buckets of water to its destination. The SMT is the buckets and Steem blockchain is the chain that carries them. In ETH contracts and transactions must paying gas fees to use Ethereum's underlying blockchain infrastructure. In Steem or EOS tokens (SMT's) must use bandwidth, which requires holding a certain amount of Steem power. As a fairly early on investor into ETH it took me about 6 months to understand why ultimately builder blockchains such as ETH, EOS, Steem will have much more value than the app tokens themselves and the currencies such as Bitcoin, since they enable a Web 3.0 infrastructure for future apps to be built on. Appics is built on the Steem blockchain but tokenized with its own coin. If successful Appics value would vastly increase but so would Steem value to a lesser extent. However, if many successful SMTs are launched Steem token should ultimately gain more value than any of its tokens. We can already see this playing out in real life with Ethereum. To date I don't believe there's any ERC-20 token that's outperformed the price of ETH over the last year. Personally I would rather be making a bet on the entire ERC-20 eco-system rather than just one tokens success or not. I believe the same to be true for Steem once SMTs offically launch. I believe this is why @ned is so keen on successful launch of SMTs.
Great analogy with the chain and buckets of water! And I think you're absolutely right; the value of Steem should only increase as more SMTs are launched. We're providing the framework for the future of these "proof of brain" applications. Great breakdown! Thanks
I like this analogy
Most excellent explanation @hedge-x . Thanks for sharing.
thanks for this breakdown- really helps me to understand it better :)
Great to see how STEEM can potentially get nore value than ETH as they can stake STEEM for bandwidth. I had not seen that potential which is huge as supply would be constrained. If media outlet come in quickly, they may be a squeeze on the price and it will also distribute it more broadly amongst the community. Thanks for the information!
You're today's comment winner!! 😎🥂
Each day I pick a random comment on my post to upvote and today was your lucky day 🙌🏻
Aren't these token ICOs just as dangerous as any ICO? Seems risky even if their white paper doesn't talk about risks of never starting.
Investing money into anything (including ICOs) has risk. However, I don't think there is any chance that APPICs will fail to launch. Especially with them having Steemit's development team helping them along the way and ensuring their success.
I guess that they have the backing of the Steemit team, so that gives them a bit more validity. I just can't wrap my head around the purpose of introducing tokens when there is already a currency to promote posting. Is this for encouraging posting within a certain tag? I can't understand the motivation to get these coins or hold them, instead of instantly converting them to steem or SBD?
APPICs is an entirely different platform so their content will differ from Steemit. And each SMT can program their blockchain differently so it will differ slightly from Steemit. For example, some rewards will go back to the company for application costs. But there are a lot of different parameters they can program which will make them unique.
And you would want the APPICs coin if you're going to be using APPICs. Just like with Steemit, you need Steem to function on the blockchain. But if you're not going to be using APPICs, then the only reason to have the coins is as an investment.
I heard about SMT, will listen to your video on my way to work. Thanks so much.
You're welcome, enjoy it! :)
Hey. Do you know: is there a road map for the SMT?
J
SMTs are already launched. Any platform or website that wants to utilize an SMT can now do so.
They are ? I have not seen any documentation on that.
Can you point me in the right direction. Everything I have read says they are coming in the future.
Any info would be greatly appreciated.
APPICs is our first SMT and it's getting ready to launch. They're finishing up their ICO now. I mention this in the video above. :)
I'm listening to your YouTube video now.
Thanks for posting it.
I always think that I'm back in school when watching your videos. Which is a good thing. If only they taught us this kinda stuff in school - we all would have been better off financially.
What an informative video this is. Thank you for taking out time to properly explain all this.
What an informative video this is. Thank you for taking out time to properly explain all this.
What an informative video this is. Thank you for taking out time to properly explain all this.
Informative Post :)